Einhorn, who has mounted a campaign to get Apple
Incto share more of its $137 billion cash pile, used the
leveraged buyout of Dell as an example of a cash policy that is
shareholder unfriendly.

Michael Dell has struck a deal to take private the No. 3 personal
computer maker he created in a college dorm room in 1984. The
founder is partnering with private equity house Silver Lake and
Microsoft
Corpbut the $24.4 billion deal is being opposed by some of Dell's
major shareholders, including Southeastern Asset Management,
which said the deal substantially undervalues the company.

"Dell's go-private effort shows the disingenuous nature of
hoarding cash," he said during a conference call where he
detailed the benefits of distributing perpetual preferred stock -
his favored way of rewarding shareholders of Apple.

The 44-year-old hedge fund manager, who made his name and fortune
by predicting the collapse of Lehman
Brothers, said his firm was a large shareholder of Dell last
year but sold the shares after he found the company's capital
allocation strategy "unappealing."

Einhorn said he made the decision to sell after he was told
Dell's foreign cash couldn't be repatriated and domestic cash was
needed for strategic acquisitions and other operational moves.

Attributing the slide in Dell's shares to the frustration of
shareholders, he said the depressed price of the stock created an
opportunity for Michael Dell.

"Michael Dell probably didn't mind the stock falling," he said.
"Now he wants to take Dell private and, voila, the balance sheet
will be fully utilized to finance his purchase of the company."

Einhorn said, "At least some of the untouchable foreign cash -
take a deep breath - is set to be repatriated," adding that
Dell's cash-rich balance sheet will become highly levered with
the buyout deal.

A Dell spokesman did not have immediate comment.

Memphis-based Southeastern Asset has offered several alternatives
to the deal that it said would produce a better outcome for
public shareholders, including borrowing money to make a major
share repurchase or breaking up the company and selling the units
separately.

While Michel Dell and his investment firm are contributing $750
million in cash toward the $24.4 billion purchase of Dell along
with $1 billion from Silver Lake, the PC maker is also targeting
the repatriation of $7.4 billion of cash now parked abroad to
help finance the deal.

A hefty tax is usually levied on cash brought back from overseas.

"In other words (Dell) management actions show that when it is
our money, it needs to be held conservatively and reserved for
strategic flexibility," Einhorn said. "But when it is their
money, they don't need so much rainy day cash and they would like
to see the balance sheet working harder to generate the maximum
return on equity."